Correlation Between Goldman Sachs and Campbell Soup
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and Campbell Soup at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Goldman Sachs and Campbell Soup into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Goldman Sachs Esg and Campbell Soup, you can compare the effects of market volatilities on Goldman Sachs and Campbell Soup and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Goldman Sachs with a short position of Campbell Soup. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and Campbell Soup.
Diversification Opportunities for Goldman Sachs and Campbell Soup
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Goldman and Campbell is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Esg and Campbell Soup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Campbell Soup and Goldman Sachs is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Goldman Sachs Esg are associated (or correlated) with Campbell Soup. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Campbell Soup has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and Campbell Soup go up and down completely randomly.
Pair Corralation between Goldman Sachs and Campbell Soup
Assuming the 90 days horizon Goldman Sachs Esg is expected to generate 0.62 times more return on investment than Campbell Soup. However, Goldman Sachs Esg is 1.62 times less risky than Campbell Soup. It trades about 0.02 of its potential returns per unit of risk. Campbell Soup is currently generating about -0.05 per unit of risk. If you would invest 870.00 in Goldman Sachs Esg on January 18, 2024 and sell it today you would earn a total of 37.00 from holding Goldman Sachs Esg or generate 4.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Goldman Sachs Esg vs. Campbell Soup
Performance |
| Timeline |
| Goldman Sachs Esg |
| Campbell Soup |
Goldman Sachs and Campbell Soup Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldman Sachs and Campbell Soup
The main advantage of trading using opposite Goldman Sachs and Campbell Soup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, Campbell Soup can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Campbell Soup will offset losses from the drop in Campbell Soup's long position.| Goldman Sachs vs. Goldman Sachs Clean | Goldman Sachs vs. Goldman Sachs Clean | Goldman Sachs vs. Goldman Sachs Clean | Goldman Sachs vs. Goldman Sachs Clean |
| Campbell Soup vs. Seneca Foods Corp | Campbell Soup vs. Central Garden Pet | Campbell Soup vs. Central Garden Pet | Campbell Soup vs. Aryzta AG PK |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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